Sales fall short a second time in a row. Earnings drop 28%, and the PC maker's prediction for the rest of the year is modest. Analysts say the problem is isolated.

This is not the sort of trend Dell Inc. is used to: The world's largest personal computer maker said Thursday that revenue fell short of expectations for the second quarter in a row and predicted lackluster results for the fourth quarter as well.

Third-quarter profit dropped 28%, dragged down by charges to fix faulty parts and a reluctance by PC buyers to step up to Dell's newer higher-end, higher-margin lines.

Chief Executive Kevin Rollins said he was disappointed.

Round Rock, Texas-based Dell earned $606 million, or 25 cents a share, compared with $846 million, or 33 cents, in the same period last year. Revenue rose 11% to $13.9 billion.

Dell had previously predicted revenue for the quarter ended Oct. 28 of $14.1 billion to $14.5 billion but lowered that forecast this month because of weak sales in the U.S. and England.

Dell also took $442 million in charges in the quarter for repairs of a faulty PC component and for a restructuring that cut about 1,000 jobs.

For the fourth quarter, Rollins said, Dell probably will earn 40 to 42 cents a share on revenue of $14.6 billion to $15 billion. That came in on the low end of predictions of analysts polled by Thomson Financial of 42 cents and revenue of $15 billion.

Dell shares, which gained 19 cents to close at $29.21, fell 29 cents after hours on the outlook.

Although Dell is the market leader in PCs, its troubles don't point to a slowing of the overall technology sector, analysts said.

"I don't think it says a whole lot" about technology spending, said Richard Chu, an analyst with SG Cowan & Co. in Boston. "What we're seeing is some evidence of a tougher consumer PC market."

Corporate markets have been modest for some time, and Chu said he didn't read "any larger caution" into Dell's results.

"Dell has never been a good barometer of the tech industry -- they've done a good job in bad times, growing much faster than the market," said Brent Bracelin, an analyst with Pacific Crest Securities in Portland, Ore.

Bracelin said other companies such as Apple Computer Inc. represented "some pretty bright spots" in the broader consumer electronics market.

Consumers snapped up budget-priced PC systems from Dell and rival makers during the third quarter, although Dell was introducing a new line of its premium XPS computers, built to appeal to gaming enthusiasts and selling for as much as $3,450.

Dell is returning to a "more balanced" approach to the market, Rollins said. He noted rumors that Wal-Mart Stores Inc. would sell a $399 laptop computer after Thanksgiving but said Dell already had been selling an identically priced machine for a couple of weeks.

Analysts expect Dell's revenue to reach $55 billion to $56 billion this fiscal year, short of the $60 billion that Rollins has said he expected for this year.

But Rollins stuck to his prediction of Dell's becoming an $80-billion company, though he wouldn't say by when.

"It's not a strategic goal, but we believe we can achieve it," he said. "It's still on our radar."

Dell has about 18% of the world PC market and less than 10% of the printer market, he said. With planned expansions in server computers, data storage, software and services, "there's still plenty of opportunity."